Journal Entry for Income Tax Last Updated : 05 Apr, 2023 Improve Improve Like Article Like Save Share Report Income Tax is paid by the business on the profit earned during the year. Income Tax is a personal liability of the proprietor. The journal entry will be: A. Payment of Income Tax: Journal Entry: B. Refund of Income Tax: Journal Entry: Example: Income Tax paid ₹1,500. Refund of Income Tax received ₹500. Solution: Like Article Suggest improvement Previous Journal Entry for Income Received in Advance or Unearned Income Next Journal Entry for Life Insurance Premium & Employee's Life Insurance Premium Share your thoughts in the comments Add Your Comment Please Login to comment...